IDEAS home Printed from https://ideas.repec.org/a/taf/irapec/v11y1997i2p287-302.html
   My bibliography  Save this article

Does Liberalization Reduce Foreign Trade Data Discrepancies? Counterevidence from Turkey, 1970-91

Author

Listed:
  • ErtuGrul Tokdemir
  • Gulay Gunluk-Senesen

Abstract

This paper questions the impact of protectionist and liberal trade policies on foreign trade data discrepancies. Official records of Turkish exports and imports data are compared with data of the major partner countries (OECD, Germany, USA, Italy, Switzerland, France, UK, Benelux) for the period 1970-91. An analysis of detailed data reveals that the patterns of discrepancies are not common to all countries in the pre- and post-liberal years (i.e. before and after 1980). Hence, the Turkish case does not provide full support for the expectation that faked invoicing disappears with the liberalization of the trade regime. In addition, Switzerland emerges as a very exceptional trade partner, as compared with other partners, for both imports and exports. Turkey's exports to Switzerland are overinvoiced up to 700% until 1985, the rate of overinvoicing decreases to 200% after then. On the other hand, imports from Switzerland are overinvoiced up to 250% until again 1985. Overinvoicing of imports disappears in the wake of 1983 December measures. A comparison of imports and exports data of Switzerland with data of the above stated countries reveals that Turkey is also an exceptional partner for Switzerland. The patterns of discrepancies in foreign trade data might be closely related to capital transactions, noting that Switzerland offers the world favourable conditions for financial transactions. We also note that general patterns can be related to those of some specific commodities which might act as a means of transferring capital because the details of the trade regime regulations concerning them can be easily identified. Yet, generally speaking, the consequences of policy implementations do not straightforwardly match with expectations.

Suggested Citation

  • ErtuGrul Tokdemir & Gulay Gunluk-Senesen, 1997. "Does Liberalization Reduce Foreign Trade Data Discrepancies? Counterevidence from Turkey, 1970-91," International Review of Applied Economics, Taylor & Francis Journals, vol. 11(2), pages 287-302.
    • Handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:287-302
    DOI: 10.1080/02692179700000018
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/02692179700000018
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/02692179700000018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anne O. Krueger, 1974. "Appendices and Index to "Foreign Trade Regimes and Economic Development: Turkey"," NBER Chapters, in: Foreign Trade Regimes and Economic Development: Turkey, pages 271-339, National Bureau of Economic Research, Inc.
    2. Anne O. Krueger, 1974. "Foreign Trade Regimes and Economic Development: Turkey," NBER Books, National Bureau of Economic Research, Inc, number krue74-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zelal Aktas & Altan Aldan & M. Utku Özmen, 2014. "Import surveillance and over-invoicing imports: the case of Turkey," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 17(4), pages 360-373, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Devashish Mitra, 2001. "Trade Liberalization, Labor Markets and Imperfect Competition," Economics Study Area Working Papers 29, East-West Center, Economics Study Area.
    2. Utku Utkulu & Durmus Özdemir, 2005. "Does Trade Liberalization Cause a Long Run Economic Growth in Turkey," Economic Change and Restructuring, Springer, vol. 37(3), pages 245-266, September.
    3. Z. Hatiboglu, 1983. "An Unconventional Approach to the Analysis of Growth in Developing Countries and its Application in Turkey," South African Journal of Economics, Economic Society of South Africa, vol. 51(2), pages 199-206, June.
    4. K.J. Joseph, 2013. "Has Trade been an Engine of Inclusive Growth? India’s Experience under Globalization," Millennial Asia, , vol. 4(2), pages 135-157, October.
    5. Robert Lensink & Aljar Meesters, 2014. "Institutions and Bank Performance: A Stochastic Frontier Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 76(1), pages 67-92, February.
    6. Mustafa Ismihan & Kivilcim Metin-Ozcan & Aysit Tansel, 2002. "Macroeconomic Instability, Capital Accumulation and Growth: The Case of Turkey 1963-1999," Working Papers 0209, Economic Research Forum, revised 21 Mar 2002.
    7. Kumcu, Erdogan & Harcar, Talha & Kumcu, M. Ercan, 1995. "Managerial perceptions of the adequacy of export incentive programs : Implications for export-led economic development policy," Journal of Business Research, Elsevier, vol. 32(2), pages 163-174, February.
    8. Rodgers, Yana Van der Meulen & Cooley, Jane C., 1999. "Outstanding Female Economists in the Analysis and Practice of Development Economics," World Development, Elsevier, vol. 27(8), pages 1397-1411, August.
    9. Tim Jacoby, 2003. "For the People, Of the People and By the Military: The Regime Structure of Modern Turkey," Political Studies, Political Studies Association, vol. 51(4), pages 669-685, December.
    10. Utku UTKULU & Dilek SEYMEN & Aydin ARI, 2010. "Export Supply and Trade Reform: The Turkish Evidence," EcoMod2004 330600144, EcoMod.
    11. Augey Dominique, 1995. "Political Economy Of Policy Reform In Developing Countries," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 6(4), pages 695-702, December.
    12. Anne O. Krueger, 1995. "Partial Adjustment and Growth in the 1980s in Turkey," NBER Chapters, in: Reform, Recovery, and Growth: Latin America and the Middle East, pages 343-368, National Bureau of Economic Research, Inc.
    13. Douglas B. Fuller, 2013. "Building Ladders out of Chains: China's Hybrid-led Technological Development in Disaggregated Value Chains," Journal of Development Studies, Taylor & Francis Journals, vol. 49(4), pages 547-563, April.
    14. Tariq Banuri, 1989. "Black Markets, Openness, and Central Bank Autonomy," WIDER Working Paper Series wp-1989-062, World Institute for Development Economic Research (UNU-WIDER).
    15. Erzan R., 1986. "External account, growth and employment in Egypt and Turkey: historical review and prospects," ILO Working Papers 992485223402676, International Labour Organization.
    16. Hasan Ersel, 2013. "Politico-Economic Development of Turkey and The Transformation of Political Islam," Working Papers 746, Economic Research Forum, revised Apr 2013.
    17. Ranis, Gustav & Stewart, Frances, 2006. "Successful Transition towards a Virtuous Cycle of Human Development and Economic Growth: Country Studies," Center Discussion Papers 28396, Yale University, Economic Growth Center.
    18. repec:ilo:ilowps:248522 is not listed on IDEAS
    19. Amelung, Torsten, 1988. "The political economy of import substitution and subsequent trade liberalization: The case of Turkey," Kiel Working Papers 330, Kiel Institute for the World Economy (IfW Kiel).
    20. Ziya Onis & Fikret Senses, 2007. "Global Dynamics, Domestic Coalitions and a Reactive State: Major Policy Shifts in Post-War Turkish Economic Development," Working Papers 2007/7, Turkish Economic Association.
    21. Utku Utkulu & Dilek Seymen, 2004. "Trade and Competitiveness Between Turkey and the EU: Time Series Evidence," Working Papers 2004/8, Turkish Economic Association, revised Mar 2004.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:irapec:v:11:y:1997:i:2:p:287-302. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CIRA20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.